Harassed By Loan Recovery Agents? Here Are The Rights You Should Know

Loan Repayment

Whenever one takes loans, it is necessary to pay back, but in case one cannot pay back, a loan recovery agent cannot harass. Therefore, one needs to be aware of the rights. 

Rights; 

1. Harassment Prohibition- Loan recovery agents must adhere to the specific communication hours (8 AM to 7 PM) as per RBI guidelines. They cannot engage in harassment, including persistent calls or intimidation. 

Identification

In order to ensure transparency, a recovery agent needs to present proper identification and authorization from the bank during interactions.

Notice Requirement

If the borrower fails to repay, lenders must provide a notice period of 30-60 days before taking actions like auctioning collateral assets.

Valuation Rights

Before any auction takes place, borrowers have the right to contest asset valuations if they believe them to be incorrect.

Legal Protections

If the lender harasses the borrower, he/she can report to their bank or RBI and seek legal help for intimidation or coercion under various legal frameworks, including the Consumer Protection Act.

Read more